Franklin Templeton launches emerging markets balanced fund

cutting_the_ribbonFranklin Templeton is to launch a fund that invests in both equities and bonds in emerging markets


The Templeton Emerging Markets Balanced Fund will be co-managed by Mark Mobius and Michael Hasenstab.

Mobius, who is seen as a leading light in emerging market fund management, is a long-time champion of investment in the sector and has managed funds at the company since 1987. Hasenstab is a well-regarded bond manager.

Franklin Templeton already operates several funds focusing on emerging markets, including the Templeton Emerging Markets Fund, which invests in equities, and the Templeton Emerging Markets Bond fund, which invests in debt securities. The firm also has funds focused on individual markets such as India, China, Korea and Thailand. Mobius leads management teams on many of the emerging markets funds.

The company says it hopes the balance between equities and bonds in the new fund will offer lower volatility and better risk-adjusted returns than a pure equity fund. This may appeal to retail investors who want to entrust Franklin Templeton with managing their asset allocation.

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